You’re a business owner, not an accountant or bookkeeper — and if you are, then you still have to juggle other business obligations while handling line items every single day. It’s not an ideal situation to do everything in your business, but it’s one that many growing businesses expect of their owners and operators.
At Limitless Investment & Capital, we want you to run your business, not work in it. Our business accounting services offered by our experts make it so that you can rest assured that your accounting and bookkeeping obligations are accurate and complete when you call for them. No longer do you need to hedge your time every day just to make sure your line items and cash flow are in check.
Business Accounting Mistakes to Avoid
Reconcile Receivables Late
There is a three-phase process for proper transactions and how to account for them. The first step is to send out an invoice. The second step is to create a receivable for that invoice. Finally, when you get paid on that invoice, you need to record said payment against the created receivable as soon as possible.
When you reconcile receivables late, your business will be operating off an inaccurate ledger, which can ultimately lead to negative cash flow and your business being in the red.
Ignore Recording Cash Expenses
It’s hard to keep track of your cash expenses. Nearly everything we record today can be done digitally. What’s more, we rely on our credit card and debit card statements to hit our accounting software and record our transactions.
Unfortunately, when you do not record your cash expenses, you may end up paying too much in taxes. Either you need to start recording cash expenses or you use cash as little as possible for business expenses.
Avoid Business Financial Reports
One of the worst mistakes you can make as a business owner is to avoid business financial reports. These reports are your high-level view of your cash flow and business standings. If you prefer to “hope for the best” in business, you will end up failing.
At the bare minimum, you should be checking the following at least once a week:
- Cash Flow
- Accounts Receivable
- Accounts Payable
When it comes to reports, the items above can be viewed so that you can get a better view of your business financials. This gives you more information when making vital growth decisions. The growth of your business relies on your financials so do not avoid the reports which give you that information.
Keeping Accounting In-House
Yes, you may have more control over your accounting obligations, but it’s going to cost you more. On average, in-house accounting and bookkeeping cost businesses more than outsourcing their needs.
Outsource Your Business Accounting
As a business owner, you’re responsible for everything. The risk is on your shoulders. Don’t make it any harder than it has to be. Outsource your business accounting obligations to Limitless Investment & Capital